e-Commerce empowerment for SMEs

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e-Commerceempowerment for SMEs

• Onno W. Purbo
• Independent IT Writer
• Onno_at_indo.net.id
• Indonesia

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References

• Industry Trade
• Cooperative SME
• Post Telecomm
• Statistical Bureau
• MASTEL
• APJII

• www.dprin.go.id
• www.depkop.go.id
• www.postel.go.id
• www.bps.go.id
• www.mastel.or.id
• www.apjii.or.id

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Archive e-Discussion

• Mastel-e-commerce_at_egroups.com
• Ukmnet_at_egroups.com
• Asosiasi-warnet_at_egroups.com
• Asosiasi-warnet-broadband_at_egroups.com
• Genetika_at_egroups.com
• Telematika_at_egroups.com

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Term of Reference

• Life-long learning and the training of
  information and communications technology
  professionals
• Skills retention strategies for trade
  administration agencies reliant on information
  and communications technology
• Collaboration with the business/private sector on
  skills development
• Development of skills required to assist APEC
  members to establish a more pro-competitive
  policy and regulatory environment
• Development of skills standards to support
  e-commerce

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Overview
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Current Indonesia Situation

• Population of 220 million people
• 90 million labor force
• Only 3-4 million univ. grads
• IT penetration correlates to education level.

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IT Infrastructure Condition

• 2.2 million PC
• 8 million lines (Telcos monopoly).
• 150 ISP (liberal / no monopoly)
• 150.000 Telecommunication Kiosk
• 1200 Internet Café
• Access point for 60-70 Indonesian users.
• 25.000 lines for connecting schools.
• 1.5 million Internet user
• Double every year.
• Hope to reach 20 million by 2004.

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Business Structure

• 40 Million Enterprises
• gt98 SMEs

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Industry Structure(BPS-KOMPAS 21-08-2000)
Scale No.Firms No.Worker Rp. Billion
Large-Med 22,997 4,214,957 264,270
Small 241,169 2,077,298 14,858
Household 2,501,735 4,075,763 11,312
Total 2,765,901 10,368,020 290,440
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Focus on e-Impact
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Identified Major Issues

• Social Cultural Aspects
• Highly related to level of education.
• National movement on IT literacy.
• Enable the SMEs for high impact
• Knowledge
• Preferably in local language.
• Human Resource
• Teachers.
• Infrastructure
• Telecomm Internet Access.
• PC / Computers.

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Basic Belief

• Mass of qualified Human Resource is the key of
  success.
• IT Retention can only be maintained if
• Demand side - Enough carrots in marketplace for
  such IT knowledge.
• Supply side - Abundant accessible IT knowledge
  available at low no cost.
• Regulatory policy framework Make sure it can
  be implemented - self-finance sustainable.
• Language number of literature would be the
  major barrier.

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Challenges

• Simple policy tech for high impact.
• Small IT Mass (0.5 of population)
• Low density
• Information access facilities.
• Computer / PC
• Telecommunication infrastructure.
• Slow Distribution of Knowledge.

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Example ofReal Life Experiences

• Wayan, Bali Lombok
• Share design with European Distribution.
• Sells their craft art over the Internet.
• Anshori, Lampung
• Butterfly cultivation
• sell it at US7 / cocoon.
• Jerry, Bandung
• Textile export
• via B2B marketplace (mailing list).

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Real Life Skill Needed for SMEs

• Ability to Read Write in English.
• Limited knowledge of Internet
• e-mail Web
• Knowledge of B2B Markerplace
• mailing lists on the Internet
• Access to Internet Café / Kiosk
• US1 / hour (affordable for most people)
• US5 / month (e-mail only access).

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Indonesian e-Environment
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E-commerce Community

• Mastel-e-commerce_at_egroups.com
• Warta-e-commerce_at_egroups.com
• I2bc_at_egroups.com
• Indonesia Internet Business Community I2BC
• Ukmnet_at_egroups.com
• Indonesian SMEs network.

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Indonesian Internet Activities

• National IT Movement
• Telematika_at_egroups.com
• Genetika_at_egroups.com
• Internet Café Association
• Asosiasi-warnet_at_egroups.com
• Education Community
• Dikmenjur_at_egroups.com (vocational schools)
• Jii_at_isnet.itb.ac.id (rural islamic schools)
• Kopertis-iv_at_egroups.com (private universities)
• Idln_at_idln.itb.ac.id (digital library network)

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Create Mass Demand
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Focus Tactical Activities

• Focus on Mass Centers
• Schools 18 million students
• Univ 5 million students
• Need only 25.000 lines for schools.
• Internet Telco Kiosk 20-30M people
• Simple policy high impact.
• Focus on simple EC mechanism
• Substitute Telp, FAX with E-mail / VoIP.
• Simple B2B community forum e.g. mailing list.
• Use conventional payment systems.

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Focus Tactical Activities

• Build Extend Regional Marketplace
• Aceh North Sumatra with Singapore or Malaysia.
• North Sulawesi with Philippine.
• Maluku Papua with the Pacific.
• Bali, Nusa Tenggara Maluku with Australia
• If possible automate the transaction of their
  activities, e.g. using EDI.

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Brief Infrastructure Strategies
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Internet Infrastructure

• Liberalization of ISP 150 license.
• 25.000 lines for educational sector
• 18 million potential internet users
• Require low cost internet appliance.
• Internet kiosk self-finance
• Contribute 60-70 current users
• Require internet appliance / terminal.
• Corporate user self-finance

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Brief Knowledge Strategies
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The Actor

• Small Medium Business Industry.
• 80 million workforce.
• 30 million business entities.
• 2.5 million industries.

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Capacity BuildingMultiplying Effect

• Education Sector 20 million people.
• Sustainable community-based telecenters.
• Development Consultants / NGOs.

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Real Example ofKnowledge Tactical Aspects

• Knowledge Management
• Digital Library
• One way knowledge dissemination
• Two ways interactions

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Knowledge Management

• Manual Translation
• Public domain IT Knowledge in CD-ROM.
• Digital Library
• Indonesia Digital Library Network
  http//digital.lib.itb.ac.id
• Indonesia Cyber Library Society
  i_c_s_at_egroups.com

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Knowledge Generation

• Encourage writers to put publish their work in
  public.

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One Way Dissemination

• 20 dedicated IT magazines nationally.
• Reaches couple 100th thousands people.
• IT column in most newspapers.
• Reaches millions people.
• Public Domain Knowledge on Free CD-ROM.
• gt100 title IT books in Indonesian
• Need more dedicated IT writers.
• MoST Technology Kiosk.
• http//www.iptek.net.id
• http//www.citn.or.id

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Two Way Interactions

• Egroups.com mailing lists.
• Seminar / Workshop
• Millenium Internet Roadshow 15 cities
• 2-6 Internet Seminars / Week in various cities.
• Min. 2x / week Internet Radio Talkshow
• Training for trainers / IT evangelists.

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Summary

• Focus on SME
• Educational Sector as strategic entry.
• Proposed Major Strategies
• Knowledge generation in local language
• Incentive for IT writer.
• Training for trainers / IT evangelists.
• Create knowledge infrastructure
• Adopt simple e-commerce mechanisms. Focus on
  maximizing economical impact.

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Thank you